The Loot Project: A New Approach to NFTs

A New Approach to Game Creation with Loot and NFTs

Editor’s note: Kyle Russell, the founder of Playbyte – a company developing a mobile game creation application – shares insights into a recent development in the gaming world.

Last Friday, Dom Hofmann announced the launch of Loot, a novel project exploring game development and gaming itself through the application of Non-Fungible Tokens (NFTs).

For those unfamiliar with terms like “NFTs,” “gas,” and “minting,” this project essentially allows users to expend funds to establish a unique inventory of items. These inventories are stored within a digital wallet, such as Rainbow, commonly used for cryptocurrencies and digital collectibles – often in the form of artwork (as some critics point out, sometimes simply JPEGs).

It’s important to reiterate: a unique inventory of items is created. There is no accompanying artwork, statistical data for quality comparison, or even defined game mechanics to govern these statistics.

Despite this, individuals invested money to acquire these unique inventories. Substantial sums were spent, and, as is typical with NFTs, a marketplace rapidly emerged around these item lists.

The “floor” price – the lowest amount required to purchase a Loot “bag” – quickly escalated to several thousand dollars worth of Ethereum. Certain items within these lists were perceived as desirable and, upon analysis of the complete dataset, were found to be scarce, driving the value of bags containing them to extraordinary levels.

https://twitter.com/jacksondame/status/1432848274487193608?s=21

Subsequently, creators began to populate the missing elements, such as artwork – not altering the fundamental lists themselves, but instead producing new creations that directly reference the items contained within specific lists.

Similar to the lists themselves, an algorithmic methodology was adopted for generating this artwork.

By August 31st, a discernible community had formed, comprised of individuals:

• investing in bags based on their item composition;
• developing tools to visualize Loot items and track price movements within this specialized market;
• initiating new, related projects, such as designing Realms for a hypothetical adventurer equipped with the items from a Loot bag:

However, it’s crucial to note that no game rules currently exist for these items – including a definition of what it means for a character to actually utilize them!

Interestingly, users are now independently creating and generating statistical data for these items.

This observation accurately captures the overall phenomenon:

Within a week, a community transformed a collection of text-based lists into countless illustrations, immersive worlds, and playable characters – all stemming from simple foundational elements and the context generated around them, which ultimately provides value.

This is a remarkably innovative process. However, considering the high cost – a minimum of tens of thousands of dollars – how accessible is participation in this creation? On one hand, if the enjoyment lies in the act of game creation itself, all bags and items reside on the Ethereum network, allowing for the creation of related content without significant financial investment (excluding the current, substantial transaction fees associated with Ethereum usage).

Furthermore, alternative pathways are being explored to enable broader participation:

To clarify: there are viable methods to freely “possess” these items for the purpose of engaging with the expanding ecosystem of compatible applications or games that may incorporate Loot – though you won’t own a verified Bag containing rare items with substantial resale value.

What if you appreciate certain items within a Loot bag but desire the flexibility to combine them with other items from the wider collection?

Disruption through unbundling is already occurring, and it’s only been a week!

The Appeal of a Community-Driven Superhero Universe

The Marvel Cinematic Universe (MCU) originated with Marvel Comics securing substantial financing – a billion-dollar loan – to produce the initial four films centered around its celebrated superhero characters. Public familiarity with these characters had been cultivated over decades through comic book and television appearances, paving the way for their cinematic debuts. Numerous writers and artists contributed to crafting compelling narratives that captivated audiences and encouraged continued engagement.

This development occurred within a traditional, corporate framework focused on mass production. Creative individuals at Marvel undertook impactful work, either as freelancers or employees, while printing and distribution networks ensured widespread availability of comic books. From Stan Lee’s initial concepts – such as a superhero who is a weapons manufacturer – to the later success of films like Avengers: Endgame and Black Panther, the landscape of blockbuster entertainment was fundamentally altered.

However, what if a comparable superhero universe could be constructed collaboratively, rather than directly competing with Disney’s established dominance?

Considering recent trends exemplified by Loot…

A system could be implemented where contracts are issued to generate collections of superhero names and corresponding abilities. These heroes would then be minted as NFTs and traded on open marketplaces. Tools would emerge to assess the rarity of different powers, particularly those considered desirable, like the ability to fly.

Individuals would visualize their heroes, creating artwork themselves or commissioning artists to produce compelling designs. Subsequently, technically skilled members of the community could develop tools capable of generating art in a consistent style, or allowing for customization based on specific parameters.

Collaborative artwork featuring crossovers between heroes would naturally arise, bringing the community one step closer to establishing shared storylines. Commissioning a single piece that incorporates multiple characters could simultaneously increase their individual value!

Decentralized Autonomous Organizations (DAOs) – groups formed to collaboratively create projects or make investments within the crypto space – might acquire ownership of popular characters and commission elaborate visual narratives. This would aim to enhance the value of the underlying NFT representing the hero’s name, powers, and associated artwork.

Furthermore, if the project follows the principles of Loot, all created content would be openly licensed for reuse and remixing. This concept may seem unconventional – doesn’t ownership imply control over usage?

This is the prevailing model under Disney’s control. In projects like Loot, the goal is to enhance the value of the NFT itself, which is directly tied to its recognition and reputation. Similar to the saying “all publicity is good publicity,” any form of remixing is beneficial. Being referenced signifies continued cultural relevance. Therefore, owning an NFT representing “Arachnid Person” means fostering an environment where as many people as possible want to incorporate that character into their creations, thereby increasing its worth.

This idea builds upon the insights of Dylan Field:

And John Palmer astutely points out a crucial element: the absence of gatekeepers who can veto ideas, as the community explores ways to elevate Loot’s appeal: